Forrestania to Acquire British Hill Gold Project with 56,000oz JORC Resource
Forrestania Resources has signed a binding agreement to acquire IMD Gold, owner of the British Hill gold project in Western Australia, adding a near-surface JORC-compliant resource of approximately 56,000 ounces. The acquisition enhances Forrestania’s regional footprint and development pipeline amid promising metallurgical results.
- Acquisition of 100% shares in IMD Gold Proprietary Limited
- British Hill hosts 56,000oz JORC-compliant near-surface gold resource
- Project located on approved mining lease with baseline studies and approvals in place
- Consideration includes $3.825 million in shares plus potential deferred cash or shares
- Metallurgical testwork indicates over 90% gold recovery via conventional processing
Strategic Acquisition Expands Forrestania’s Gold Portfolio
Forrestania Resources Limited (ASX – FRS) has taken a significant step to bolster its gold development portfolio by signing a binding heads of agreement to acquire IMD Gold Proprietary Limited, the owner of the British Hill gold project in Western Australia’s Southern Goldfields. This move consolidates Forrestania’s footprint in a highly prospective region and adds immediate scale to its exploration and development efforts.
The British Hill project is an advanced open pit gold prospect situated on an approved mining lease, with adjacent exploration tenements including the Parker Dome Gold prospect. The project benefits from several pre-production baseline surveys and approvals, positioning it well for near-term development.
Resource and Project Highlights
The project hosts a JORC (2012) compliant Mineral Resource estimated at approximately 1.167 million tonnes grading 1.5 grams per tonne gold, equating to around 56,000 ounces. Notably, 54,625 ounces are classified above a 0.5g/t cutoff, predominantly within Indicated and Inferred categories. The resource is near surface, which supports low-cost open pit mining methods, as confirmed by preliminary technical reviews.
Metallurgical testwork conducted by independent laboratories, including Nagrom and Extreme Metallurgy, indicates that the ore is amenable to conventional carbon-in-leach (CIL) processing with recoveries exceeding 90%. These results align with expectations for free-milling deposits in the Eastern Goldfields region, enhancing the project’s economic prospects.
Transaction Structure and Considerations
Under the terms of the agreement, Forrestania will issue shares valued at AUD 3.825 million based on a 20-day volume weighted average price (VWAP) of $0.11 per share. There is also a deferred consideration clause whereby if the share price does not reach $0.174 within three months, Forrestania will either pay up to AUD 6 million in cash or issue additional shares to meet this valuation. The company intends to use existing cash reserves if cash payment is elected.
Completion is subject to standard conditions including due diligence, regulatory approvals, and third-party consents, with Forrestania targeting finalisation by mid-August 2025. The share issuance will be conducted under existing capacity, avoiding the need for shareholder approval.
Outlook and Next Steps
Forrestania’s chairman, David Geraghty, highlighted the strategic importance of the acquisition in strengthening the company’s regional presence and advancing its growth through consolidation. The company plans to undertake further infill drilling to convert Inferred Resources to Indicated and explore opportunities to expand the resource base. Securing a milling option for ore treatment is also a priority.
With baseline studies and approvals largely in place and early works underway, British Hill represents a near-term production opportunity that could complement Forrestania’s existing projects in the region. The acquisition aligns with a broader strategy to build a quality gold development portfolio in Western Australia’s prolific gold belts.
Bottom Line?
Forrestania’s acquisition of British Hill sets the stage for accelerated development, but investors will watch closely for resource upgrades and final approvals.
Questions in the middle?
- How will Forrestania finance potential deferred cash payments if triggered?
- What is the timeline and cost outlook for converting Inferred Resources to Indicated?
- Will Forrestania secure a milling agreement soon to support near-term production?
